Citigroup plans to cut 20,000 net jobs worldwide in the medium term, the US bank announced on Friday, which is carrying out a comprehensive restructuring, particularly internationally.
In mid-September, managing director Jane Fraser announced that this transformation would involve a major reorganization of the hierarchical structure, the most important for the bank “in almost twenty years”.
During a conference call, Chief Financial Officer Mark Mason noted that the $780 million in provisions made in the fourth quarter of 2023 covered approximately 7,000 job cuts in 2024.
The New York group had around 200,000 employees at the end of 2023, excluding retail banking in Mexico, with the total number expected to increase to 180,000, according to documents published on Friday.
Citigroup has embarked on a major strategic realignment that has resulted in the divestment of a number of international retail banking subsidiaries.
In particular, there are plans to list the Mexican subsidiary Banamex, which bundles services for private individuals and SMEs.
Overall, Citi is refocusing on institutional clients, private banking and wealth management, and credit cards, but remains active in retail banking in the US.
Thanks to this overhaul, the brand plans to achieve savings of approximately $2 billion to $2.5 billion for the full year.
Citigroup, the largest American bank in 2006, had 325,000 employees at the time.
The company suffered from the full force of the 2008 financial crisis and was burdened by significant portfolios of risky assets, particularly subprime loans.
It is more established abroad than its American rivals and has also been more vulnerable to international crises, notably the invasion of Ukraine or the recent devaluation of the Argentine peso.